Coast FI allows individuals to stop contributing to retirement accounts after reaching a certain savings milestone, relying on compound interest for future growth. At 43, with $800,000 saved, a couple could potentially have $3 million by age 65. This situation prompts evaluation of whether to continue maximizing contributions or focus on paying down debt and enhancing current lifestyle choices, especially when facing the temptation of turning down 'free money' associated with company matches.
Coast FI is the point at which you have saved enough to reach Financial Independence by the traditional retirement age through compound interest alone. Once you reach this point, you don't have to make any further contributions to your retirement portfolio.
With $800,000 at 43, you're ahead of most retirement benchmarks. If that grows to $3 million by 65, you'd have a substantial nest egg in retirement.
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